Byju’s Fires 170 Employees In Kerala; They Ask Minister To Intervene & Stop These Terminations

A group of employees from Byju’s on October 25 met Kerala labour minister V Sivankutty, accusing the company of forcing more than 170 staff to resign, as it plans to discontinue operations in Thiruvananthapuram.

Minister stepping in

The group approached Prathidhwani, a welfare organisation of techies for help.

Prathidhwani requested Sivankutty to step in and help employees reach an “amicable’ and dignified” settlement with the organisation.

The minister agreed to intervene.

Allegations

Prathidhwani Secretary Vineeth Chandran who was present at the meeting on October 25 said employees were given two options- either resign and if they don’t, their contracts would be terminated.

They were told by the firm that if their contracts are terminated, their future employment prospects would take a hit.

No one from Byju’s senior management was present at the meeting.

The company sent an email to the minister requesting another meeting next week since no one was in town due to the holidays.

There will be a meeting next Monday (October 31).

Employee demands

They want their October salaries to be paid on November 1.

They also want a one-time settlement of salary for the upcoming three months (from November 2022 to January 31, 2023), encashment of earned leave and full settlement of variable pay.

A spokesperson for Byju’s said they are offering the entire Trivandrum team an opportunity to relocate to Bengaluru and have provided them more than a month’s time to decide on this matter.

Byju’s statement

“If they choose to not use this opportunity, we have made available a generous and progressive exit package to all employees impacted by the restructuring, including extended health insurance benefits, outplacement services and garden leave. 

This package even includes an assured opportunity to be re-hired by Byju’s within the next 12 months at any operational center across India,” the spokesperson added.

Further layoffs impending?

The accusations come a couple of weeks after the company said it would lay off 5 percent of its workforce, or close to 2,500 employees.

This is an attempt to cut costs as it aims to achieve company-level profitability by March 2023.

However, it’s unclear if the 170 employees are a part of the layoffs announced on October 12.

Troubling financials

Byju’s losses rose to over Rs 4,500 crore in FY21, making it the biggest loss-making startup in the country.

The company has not reported its numbers for FY22 (2021-22) yet and it was only recently that it saared its FY21 numbers, nearly 19 months after the fiscal year ended.

It’s clear to see that the company is beset by troubles that are only mounting. 

Demand was dependent on the pandemic

For the world’s most-valued edtech startup, demand and funds for online learning, which thrived thanks to the pandemic, is now drying up as the pandemic ebbs.

Last week, the company raised its first-ever flat round of $250 million from existing investors at a valuation of $22 billion.

This serves as indication that the company’s valuation curve may be plateauing.